Overview

• New Financial and the Capital Markets Industry Taskforce propose requiring DC default funds to hold 20–25% of their equity allocation in UK stocks with an individual opt-out.
• The research projects additional flows of roughly £76 billion to £95 billion into London-listed equities by 2030 compared with current trajectories.
• Because about 96% of savers remain in default strategies, critics say the opt-out design would function like a mandate and could clash with trustees’ duty to maximise returns.
• UK equities now make up about 9% of DC equity holdings and 4.9% of total assets, down from around 40% a decade ago, which the report describes as a market “doom loop.”
• The debate unfolds as the government retains a reserve power to compel domestic investment if voluntary efforts fall short, and as industry backers and public opinion surveys draw scrutiny over incentives and trade-offs.